Table of Contents:
Investor Relations
200 East Hardin Street
Consolidated Statements of Income 2
Findlay, OH 45840
Consolidated Statements of Comprehensive Income 3
[email protected]
Consolidated Balance Sheets 4
419/421-2071
Consolidated Statements of Cash Flows 5
Financial Statistics 6
L&S Selected Operating Data 7
G&P Selected Operating Data 8
Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Net Income 9
Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable Cash Flow attributable to GP and LP Unitholders from Net Income 10
Reconciliation of Adjusted EBITDA attributable to GP and LP Unitholders and Distributable Cash Flow attributable to MPLX LP from Net Cash Provided by Operating Activities 11
Reconciliation of Capital Expenditures 12
November 4, 2020
In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to facilitate comparisons of past performance and future periods. This press release and supporting schedules include the non-GAAP measures adjusted EBITDA (including segment adjusted EBITDA), distributable cash flow (DCF) and distribution coverage ratio. The amount of adjusted EBITDA and DCF generated is considered by the board of directors of our general partner in approving the Partnership’s cash distribution. Adjusted EBITDA and DCF should not be considered separately from or as a substitute for net income, income from operations, or cash flow as reflected in our financial statements. The GAAP measures most directly comparable to adjusted EBITDA and DCF are net income and net cash provided by operating activities. We define Adjusted EBITDA as net income adjusted for (i) depreciation and amortization; (ii) provision/(benefit) for income taxes; (iii) amortization of deferred financing costs; (iv) gain/loss on extinguishment of debt; (v) non-cash equity-based compensation; (vi) impairment expense; (vii) net interest and other financial costs; (viii) income/(loss) from equity method investments; (ix) distributions and adjustments related to equity method investments (x) unrealized derivative gains/(losses); (xi) acquisition costs; (xii) noncontrolling interests and (xiii) other adjustments as deemed necessary. In general, we define DCF as adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) net interest and other financial costs; (iii) maintenance capital expenditures; (iv) equity method investment capital expenditures paid out; and (v) other adjustments as deemed necessary. Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe the presentation of adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. DCF is a financial performance measure used by management as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders.
Additional information regarding Investor Relations, Financial Highlights,
and News Releases can be reviewed on our website at: www.mplx.com
Third Quarter 2020
MPLX LP is a diversified, large-cap master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC). On July 30, 2019, we completed the merger with Andeavor Logistics LP (ANDX). Financial information has been retrospectively adjusted for the acquisitions of Hardin Street Marine LLC, Hardin Street Transportation LLC, Woodhaven Cavern LLC and MPLX Terminals LLC as these transactions were considered transfers between entities under common control. Financial information has been retrospectively adjusted for the acquisitions of ANDX as noted on the following pages. Transfers of businesses between entities under common control require prior periods to be retrospectively adjusted to furnish comparative information.
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions, except per unit data) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
Revenues and other income:
1 Service revenue $ 958 $ 1,156 $ 1,856 $ 614 $ 619 $ 632 $ 633 $ 2,498 $ 612 $ 563 $ 604 $ 1,779
2 Service revenue - related parties 936 1,082 2,404 803 847 899 906 3,455 928 857 909 2,694
3 Service revenue - product related — — 220 34 26 26 54 140 39 22 41 102
4 Rental income 298 277 352 99 93 99 97 388 96 98 102 296
5 Rental income - related parties 235 279 846 325 286 293 292 1,196 234 237 241 712
6 Product sales 572 889 887 216 189 171 230 806 169 120 165 454
7 Product sales - related parties 11 8 87 41 36 32 33 142 33 30 37 100
8 (Loss) income from equity method investments(1)
(74) 78 247 77 83 95 35 290 (1,184) 89 83 (1,012)
9 Other income 7 6 7 — 4 2 6 12 1 2 2 5
10 Other income - related parties 86 92 99 26 27 31 30 114 64 63 63 190
11 Total revenues and other income 3,029 3,867 7,005 2,235 2,210 2,280 2,316 9,041 992 2,081 2,247 5,320
Costs and expenses:
12 Cost of revenues (excludes items below) 454 528 1,096 339 353 407 390 1,489 368 315 323 1,006
13 Purchased product costs 448 651 824 194 166 129 197 686 135 87 152 374
14 Rental cost of sales 57 62 135 37 29 37 38 141 35 33 33 101
15 Rental cost of sales - related parties 1 2 31 43 36 45 41 165 46 41 32 119
16 Purchases - related parties 388 455 925 278 313 303 337 1,231 276 280 297 853
17 Depreciation and amortization 591 683 867 301 313 302 338 1,254 325 321 346 992
18 Impairment expense 130 — — — — — 1,197 1,197 2,165 — — 2,165
19 General and administrative expenses 227 241 316 101 90 102 95 388 97 96 96 289
20 Restructuring expenses — — — — — — — — — — 36 36
21 Other taxes 50 54 83 30 25 29 29 113 31 30 33 94
22 Total costs and expenses 2,346 2,676 4,277 1,323 1,325 1,354 2,662 6,664 3,478 1,203 1,348 6,029
23 Income (loss) from operations 683 1,191 2,728 912 885 926 (346) 2,377 (2,486) 878 899 (709)
24 Related party interest and other financial costs 1 2 5 1 2 5 3 11 3 1 — 4
25 Interest expense, net of amounts capitalized 210 296 590 214 214 212 211 851 211 206 207 624
26 Other financial costs 50 56 119 9 13 16 15 53 16 16 17 49
27 Income (loss) before income taxes 422 837 2,014 688 656 693 (575) 1,462 (2,716) 655 675 (1,386)
28 (Benefit) provision for income taxes (12) 1 8 (1) (1) 4 (2) — — — 1 1
29 Net income (loss) 434 836 2,006 689 657 689 (573) 1,462 (2,716) 655 674 (1,387)
30 Less: Net income attributable to noncontrolling interests 2 6 16 6 6 8 8 28 8 7 9 24
31 Less: Net income attributable to Predecessor 199 36 172 180 169 52 — 401 — — — —
32 Net income (loss) attributable to MPLX LP 233 794 1,818 503 482 629 (581) 1,033 (2,724) 648 665 (1,411)
33 Less: Series A preferred unit distributions 41 65 75 20 21 20 20 81 20 21 20 61
34 Less: Series B preferred unit distributions — — — — — 7 10 17 11 10 10 31
35 Less: General partner's interest in net income attributable to MPLX LP 191 318 — — — — — — — — — —
36 Limited partners' interest in net income (loss) attributable to MPLX LP $ 1 $ 411 $ 1,743 $ 483 $ 461 $ 602 $ (611) $ 935 $ (2,755) $ 617 $ 635 $ (1,503) Per Unit Data
Net income (loss) attributable to MPLX LP per limited partner unit:
37 Common - basic $ — $ 1.07 $ 2.29 $ 0.61 $ 0.56 $ 0.61 $ (0.58) $ 1.00 $ (2.60) $ 0.58 $ 0.61 $ (1.43)
38 Common - diluted — 1.06 2.29 0.61 0.55 0.61 (0.58) 1.00 (2.60) 0.58 0.61 (1.43)
Weighted average limited partner units outstanding:
39 Common - basic 331 385 761 794 794 974 1,058 906 1,058 1,059 1,046 1,054
40 Common - diluted 338 388 761 795 795 975 1,058 907 1,058 1,059 1,047 1,054
CONSOLIDATED STATEMENTS OF INCOME
MPLX LP
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
1 Net income (loss) $ 434 $ 836 $ 2,006 $ 689 $ 657 $ 689 $ (573) $ 1,462 $ (2,716) $ 655 $ 674 $ (1,387) Other comprehensive (loss) income, net of tax:
2
Remeasurement of pension and other postretirement benefits related to equity
method investments, net of tax — — (2) 1 — — — 1 (1) — — (1)
3 Comprehensive income (loss) 434 836 2004 690 657 689 (573) 1,463 (2,717) 655 674 (1,388)
Less comprehensive income attributable to:
4 Noncontrolling interests 2 6 16 6 6 8 8 28 8 7 9 24
5 Income attributable to Predecessor 199 36 172 180 169 52 — 401 — — — —
6 Comprehensive income (loss) attributable to MPLX LP $ 233 $ 794 $ 1,816 $ 504 $ 482 $ 629 $ (581) $ 1,034 $ (2,725) $ 648 $ 665 $ (1,412)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except ratio data)
Dec 31, 2016
Dec 31, 2017
Dec 31, 2018
Dec 31, 2019
Mar 31, 2020
Jun 30, 2020
Sep 30, 2020
Assets
Current assets:
1
Cash and cash equivalents
$
234
$
5
$
77
$
15
$
57
$
67
$
28
2
Receivables, net
299
292
611
593
522
562
477
3
Current assets - related parties
247
160
556
656
600
594
591
4
Inventories
55
65
98
110
105
115
117
5
Other current assets
33
37
98
110
45
48
59
6
Total current assets
868
559
1,440
1,484
1,329
1,386
1,272
7
Equity method investments
2,471
4,010
4,901
5,275
3,992
4,065
4,081
8
Property, plant and equipment, net
11,408
12,187
21,525
22,145
21,829
21,758
21,615
9
Intangibles, net
492
453
1,359
1,270
1,055
1,023
991
10 Goodwill
2,245
2,245
10,016
9,536
7,722
7,722
7,657
11 Right of use assets, net
—
—
—
365
352
341
323
12 Noncurrent assets - related parties
11
20
24
303
677
676
675
13 Other noncurrent assets
14
26
60
52
50
51
48
14
Total assets
17,509
19,500
39,325
40,430
37,006
37,022
36,662
Liabilities
Current liabilities:
15
Accounts payable
140
151
266
242
138
145
140
16
Accrued liabilities
232
231
272
187
135
138
169
17
Current liabilities - related parties
125
559
502
1,008
297
372
364
18
Accrued property, plant and equipment
146
194
399
283
234
154
121
19
Accrued interest payable
53
88
184
210
214
207
207
20
Operating lease liabilities
—
—
—
66
67
69
65
21
Other current liabilities
67
81
645
136
129
143
465
(2)22
Total current liabilities
763
1,304
2,268
2,132
1,214
1,228
1,531
23 Long-term deferred revenue
12
42
132
217
241
261
291
24 Long-term liabilities - related parties
19
43
46
290
290
287
281
25 Long-term debt
4,422
6,945
17,922
19,704
20,467
20,556
20,042
26 Deferred income taxes
6
5
14
12
11
11
12
27 Long-term operating lease liabilities
—
—
—
302
284
274
258
28 Deferred credits and other liabilities
177
188
208
192
175
175
184
29
Total liabilities
5,399
8,527
20,590
22,849
22,682
22,792
22,599
30 Series A preferred units
1,000
1,000
1,004
968
968
968
968
Equity
31 Common unitholders - public
8,086
8,379
8,336
10,800
9,509
9,469
9,436
32 Class B unitholders
133
—
—
—
—
—
—
33 Common unitholder - MPC
1,069
2,099
(1,612)
4,968
3,014
2,951
2,827
34 General partner - MPC
1,013
(637)
—
—
—
—
—
35 Series B preferred units
—
—
—
611
601
611
601
36 Equity of Predecessor
791
—
10,867
—
—
—
—
37 Accumulated other comprehensive loss
—
(14)
(16)
(15)
(16)
(16)
(16)
38
Total MPLX LP partners' capital
11,092
9,827
17,575
16,364
13,108
13,015
12,848
39 Noncontrolling interests
18
146
156
249
248
247
247
40
Total equity
11,110
9,973
17,731
16,613
13,356
13,262
13,095
41
Total liabilities, preferred units and equity
$
17,509
$
19,500
$
39,325
$
40,430
$
37,006
$
37,022
$
36,662
42 Consolidated total debt to LTM pro forma adjusted EBITDA
(1)2.9x
3.6x
3.9x
4.1x
4.1x
4.1x
4.0x
CONSOLIDATED BALANCE SHEETS
MPLX LP
(1) Calculated using face value total debt and pro forma adjusted EBITDA, which is pro forma for acquisitions.
Dec. 31 Dec. 31 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30
(In millions) 2016 2017 2018 2019 2019 2019 2019 2020 2020 2020
Increase (decrease) increase in cash, cash equivalents and restricted cash Operating activities:
1 Net income (loss) $ 434 $ 836 $ 2,006 $ 689 $ 1,346 $ 2,035 $ 1,462 $ (2,716) $ (2,061) $ (1,387) Adjustments to reconcile net income to net cash provided by operating activities:
2 Amortization of deferred financing costs 46 53 55 7 19 29 42 14 29 44
3 Depreciation and amortization 591 683 867 301 614 916 1,254 325 646 992
4 Impairment expense 130 — — — — — 1,197 2,165 2,165 2,165
5 Deferred income taxes (17) (1) 8 (2) (2) 1 (2) — (1) (1)
6 Asset retirement expenditures (6) (2) (7) — (1) (1) (1) — — —
7 (Gain) loss on disposal of assets (1) — 3 1 (2) (3) (6) — 1 1
8 Loss (income) from equity method investments(1) 74 (78) (247) (77) (160) (255) (290) 1,184 1,095 1,012
9 Distributions from unconsolidated affiliates 148 241 412 115 245 379 525 119 226 350
Changes in:
10 Current receivables (52) 8 (104) 6 75 38 17 71 31 69
11 Inventories (8) (3) (5) 4 — (3) (9) 3 (7) (8)
12 Fair value of derivatives 43 6 (10) 7 7 (4) 2 (15) (9) 1
13 Current accounts payable and accrued liabilities 102 48 88 (69) (117) (81) (59) (142) (102) (27)
14 Current assets/current liabilities - related parties (19) 55 (61) (157) (124) (148) (163) (52) 27 36
15 Right of use assets/operating lease liabilities — — — — 1 6 4 (4) (1) (2)
16 Deferred revenue 10 33 61 13 46 58 100 27 49 85
17 All other, net 16 28 5 15 7 23 9 30 26 6
18 Net cash provided by operating activities 1,491 1,907 3,071 853 1,954 2,990 4,082 1,009 2,114 3,336
Investing activities:
19 Additions to property, plant and equipment (1,313) (1,411) (2,111) (575) (1,136) (1,720) (2,408) (379) (708) (982)
20 Acquisitions, net of cash acquired — (249) (451) 1 6 6 6 — — —
21 Disposal of assets 1 7 8 7 8 14 30 39 43 54
22 Investments - net related party loans (17) 80 — — — — — — — —
23 Investments in unconsolidated affiliates (87) (761) (341) (135) (323) (494) (713) (91) (222) (244)
24 Distributions from unconsolidated affiliates - return of capital — 26 16 2 2 2 18 69 110 112
25 All other, net (1) — 1 — 4 3 4 — — —
26 Net cash used in investing activities (1,417) (2,308) (2,878) (700) (1,439) (2,189) (3,063) (362) (777) (1,060)
Financing activities:
27 Long-term debt - borrowings 434 2,911 13,476 1,404 3,139 8,674 9,174 1,325 2,500 5,990
28 Long-term debt - repayments (1,312) (416) (6,946) (821) (2,272) (7,423) (7,924) (581) (1,682) (5,372)
29 Related party debt - borrowings 2,532 2,369 3,962 1,405 3,833 7,708 9,313 1,667 2,708 4,870
30 Related party debt - repayments (2,540) (1,983) (4,347) (1,405) (3,789) (7,583) (8,719) (2,261) (3,302) (5,464)
31 Debt issuance costs — (29) (76) — — (20) (20) — — (23)
32 Net proceeds from equity offerings 792 483 — — — — — — — —
33 Distribution to MPC for acquisition — (1,951) (4,111) — — — — — — —
34 Issuance of redeemable preferred units 984 — — — — — — — — —
35 Distributions to Series A preferred unitholders (25) (65) (71) (20) (40) (61) (81) (20) (41) (61)
36 Distributions to Series B preferred unitholders — — — — — (21) (21) (21) (21) (41)
37 Distributions to unitholders and general partner (845) (1,120) (1,819) (515) (1,038) (1,731) (2,435) (717) (1,445) (2,162)
38 Distributions to noncontrolling interests (3) (7) (17) (6) (12) (20) (30) (9) (17) (26)
39 Distributions to common and Series B preferred unitholders from Predecessor — — (239) (259) (502) (502) (502) — — —
40 Contribution from MPC 225 — 41 12 28 52 74 14 20 34
41 Contributions from noncontrolling interests 6 129 11 94 94 94 95 — — —
42 Consideration payment to Class B unitholders (25) (25) — — — — — — — —
43 All other, net (6) (12) 19 (5) (9) (12) (13) (2) (5) (8)
44 Distributions to MPC from Predecessor (104) (113) — — — — — — — —
45 Net cash provided by (used in) financing activities 113 171 (117) (116) (568) (845) (1,089) (605) (1,285) (2,263)
46 Net increase (decrease) in cash, cash equivalents and restricted cash 187 (230) 76 37 (53) (44) (70) 42 52 13
47 Cash, cash equivalents and restricted cash at beginning of period 52 239 9 85 85 85 85 15 15 15
48 Cash, cash equivalents and restricted cash at end of period $ 239 $ 9 $ 85 $ 122 $ 32 $ 41 $ 15 $ 57 $ 67 $ 28
CONSOLIDATED STATEMENTS OF CASH FLOWS (YTD)
MPLX LP
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions, except ratio and per unit data) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
Common unit distributions:
1 Common units (LP) - public(1) $ 533 $ 656 $ 732 $ 191 $ 261 $ 266 $ 270 $ 988 $ 270 $ 270 $ 270 $ 810
2 Common unitholder - MPC(1)(2) 159 338 1,253 332 431 438 446 1,647 458 445 445 1,348
3 GP units - MPC 18 18 — — — — — — — — — —
4 Incentive distribution rights - MPC 187 211 — — — — — — — — — —
5 Total GP and LP distribution declared 897 1,223 1,985 523 692 704 716 2,635 728 715 715 2,158
Preferred unit distributions:
6 Series A preferred unit distributions(3)
41 65 75 20 21 20 20 81 20 21 20 61
7 Series B preferred unit distributions(4)
— — 21 10 11 42 11 10 10 31
8 Total preferred unit distributions $ 41 $ 65 $ 75 $ 20 $ 42 $ 30 $ 31 $ 123 $ 31 $ 31 $ 30 $ 92
9 Distribution coverage ratio(5) 1.23x 1.28x 1.49x 1.89x 1.41x 1.42x 1.42x 1.51x 1.44x 1.39x 1.44x 1.42x
10 Cash distributions declared per limited partner common unit $ 2.0500 $ 2.2975 $ 2.5300 $ 0.6575 $ 0.6675 $ 0.6775 $ 0.6875 $ 2.6900 $ 0.6875 $ 0.6875 $ 0.6875 $ 2.0625
11 Adjusted EBITDA attributable to MPLX LP(excluding predecessor results)(6) 1,419 2,004 3,475 930 920 1,165 1,319 4,334 1,294 1,227 1,335 3,856
12 Adjusted EBITDA attributable to MPLX LP(including predecessor results)(7)
1,670 2,051 3,810 1,263 1,249 1,273 1,319 5,104 N/A N/A N/A N/A
13 DCF attributable to GP and LP unitholders(7)
1,099
$ $ 1,563 $ 2,950 $ 991 $ 975 $ 997 $ 1,015 $ 3,978 $ 1,047 $ 996 $ 1,032 $ 3,075
(6) Excludes predecessor EBITDA that is attributable to the period prior to the acquisition date of July 30, 2019. (7) Includes predecessor EBITDA and DCF that is attributable to the period prior to the acquisition date of July 30, 2019.
(3) Series A preferred units are considered redeemable securities due to the existence of redemption provisions upon a deemed liquidation event which is outside our control. These units rank senior to all common units with respect to distributions and rights upon liquidation and effective May 13, 2018, on an as-converted basis, preferred unit holders receive the greater of $0.528125 per unit or the amount of per unit distributions paid to holders of MPLX LP common units.
FINANCIAL STATISTICS
MPLX LP
(5) DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution declared.
(1) The distribution on common units for the last three quarters of 2019 and the 2019 YTD amount includes the impact of the issuance of 102 million units issued to public unitholders and 161 million units issued to MPC in connection with MPLX's acquisition of ANDX on July 30, 2019. Distributions to MPC for the previously mentioned quarters exclude $12.5 million in distributions waived by MPC in connection with MPLX’s acquisition of ANDX for each quarter and an annual amount of $37.5 million. In addition, MPC agreed to waive $23.7 million in common unit distributions associated with the units received in connection with the Feb. 1, 2018 dropdown.
(4) As a result of the ANDX acquisition, 600,000 ANDX preferred units were converted into 600,000 preferred units of MPLX (the “Series B preferred units”). Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on February 15 and August 15 or the first business day thereafter.
Logistics and Storage Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
Pipeline throughput (mbpd):
1 Crude oil pipelines 1,643 1,936 3,121 3,105 3,242 3,367 3,196 3,228 3,210 2,733 3,077 3,007
2 Product pipelines 990 1,085 1,823 1,897 1,867 1,859 1,923 1,886 1,905 1,586 1,613 1,701
3 Total pipelines 2,633 3,021 4,944 5,002 5,109 5,226 5,119 5,114 5,115 4,319 4,690 4,708
Average tariff rates ($/bbl)
4 Crude oil pipelines $ 0.57 $ 0.56 $ 0.67 $ 0.96 $ 0.88 $ 0.97 $ 0.97 $ 0.94 $ 0.93 $ 0.99 $ 0.96 $ 0.96
5 Product pipelines 0.68 0.74 0.75 0.68 0.75 0.77 0.78 0.75 0.79 0.84 0.85 0.82
6 Total pipelines $ 0.61 $ 0.63 $ 0.70 $ 0.85 $ 0.83 $ 0.90 $ 0.90 $ 0.87 $ 0.88 $ 0.94 $ 0.93 $ 0.91
7 Terminal throughput (mbpd) 1,505 1,477 3,148 3,220 3,287 3,292 3,313 3,279 2,966 2,420 2,701 2,696
Marine Assets (number in operation)
8 Barges at period-end 222 232 256 256 261 264 286 286 305 305 301 301
9 Towboats at period-end 18 18 23 23 23 23 23 23 23 23 23 23
L&S Selected Operating Data
MPLX LP
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 Gathering throughput (mmcf/d) 1 Marcellus Operations 910 1,004 1,155 1,282 1,266 1,271 1,329 1,287 1,420 1,385 1,312 1,372 2 Utica Operations 932 1,192 1,809 2,109 2,066 2,381 2,241 2,200 1,800 1,903 1,816 1,840 3 Southwest Operations 1,433 1,412 1,567 1,581 1,617 1,653 1,658 1,628 1,601 1,393 1,479 1,491 4 Bakken Operations 147 152 147 149 158 151 156 126 130 137 5 Rockies Operations 841 827 852 827 806 828 775 683 659 706
6 Total gathering throughput 3,275 3,608 5,519 5,951 5,948 6,281 6,192 6,094 5,752 5,490 5,396 5,546
Natural gas processed (mmcf/d)
7 Marcellus Operations 3,210 3,885 4,448 5,148 5,202 5,300 5,339 5,248 5,522 5,516 5,706 5,582
8 Utica Operations 1,072 984 886 817 823 866 734 810 648 585 530 587
9 Southwest Operations 1,226 1,326 1,438 1,599 1,558 1,667 1,720 1,636 1,679 1,510 1,439 1,543
10 Southern Appalachian Operations 253 265 247 235 243 254 244 244 243 223 227 231
11 Bakken Operations 147 152 147 149 158 151 156 126 129 137
12 Rockies Operations 573 570 585 568 564 572 539 516 481 512
13 Total natural gas processed 5,761 6,460 7,739 8,521 8,558 8,804 8,759 8,661 8,787 8,476 8,512 8,592
C2 + NGLs fractionated (mbpd)
14 Marcellus Operations 260 320 379 420 440 433 446 435 456 464 477 466
15 Utica Operations 42 40 47 44 40 49 41 44 34 31 30 32
16 Southwest Operations 18 20 18 17 3 19 21 15 15 13 21 16
17 Southern Appalachian Operations 15 14 15 13 12 13 13 12 12 12 11 12
18 Bakken Operations 15 16 21 29 31 24 31 19 25 25
19 Rockies Operations 4 4 3 4 5 4 5 4 3 4
20 Total C2 + NGLs fractionated 335 394 478 514 519 547 557 534 553 543 567 555
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 Gathering throughput (mmcf/d) 21 Marcellus Operations 1,004 1,155 1,282 1,266 1,271 1,329 1,287 1,420 1,385 1,312 1,372 22 Utica Operations — — — — — — — — — — — 23 Southwest Operations 1,410 1,566 1,581 1,617 1,653 1,651 1,625 1,557 1,365 1,413 1,445 24 Bakken Operations 147 152 147 149 158 151 156 126 130 137 25 Rockies Operations 654 642 649 627 602 630 592 495 481 523
26 Total gathering throughput 2,414 3,522 3,657 3,679 3,700 3,740 3,693 3,725 3,371 3,336 3,477
Natural gas processed (mmcf/d)
27 Marcellus Operations 3,619 3,826 4,152 4,216 4,264 4,136 4,192 4,198 4,112 4,222 4,177
28 Utica Operations — — — — — — — — — — —
29 Southwest Operations 1,326 1,438 1,599 1,558 1,667 1,690 1,629 1,648 1,412 1,377 1,479
30 Southern Appalachian Operations 265 247 235 243 254 244 244 243 223 227 231
31 Bakken Operations 147 152 147 149 158 151 156 126 129 137
32 Rockies Operations 573 570 585 568 564 572 539 516 481 512
33 Total natural gas processed 5,210 6,231 6,708 6,749 6,902 6,792 6,788 6,784 6,389 6,436 6,536
C2 + NGLs fractionated (mbpd)
34 Marcellus Operations 320 379 420 440 433 446 435 456 464 477 466
35 Utica Operations — — — — — — — — — — —
36 Southwest Operations 20 18 17 3 19 21 15 15 13 21 16
37 Southern Appalachian Operations 14 15 13 12 13 13 12 12 12 11 12
38 Bakken Operations 15 16 21 29 31 24 31 19 25 25
39 Rockies Operations 4 4 3 4 5 4 5 4 3 4
40 Total C2 + NGLs fractionated 354 431 470 479 498 516 490 519 512 537 523
G&P Selected Operating Data
MPLX LP
Gathering and Processing (Consolidated entities plusPartnership-Operated Equity Method Investments)
Logistics and Storage Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
1 Segment income from operations $ 602 $ 1,924 $ 687 $ 675 $ 713 $ 677 $ 2,752 $ 723 $ 681 $ 677 $ 2,081
2 Depreciation and amortization 163 308 126 134 113 130 503 138 138 164 440
3 Restructuring expenses — — — — — — — — — 27 27
4 Income from equity method investments (36) (171) (45) (54) (60) (41) (200) (50) (40) (36) (126)
5 Distributions/ adjustments related to equity method investments 76 242 54 60 70 83 267 57 57 55 169
6 Acquisition costs 11 4 1 4 9 — 14 — — — —
7 Non-cash equity-based compensation 6 12 5 2 3 4 14 3 2 3 8
8 Other — — — — 1 — 1 1 1 3 5
9
L&S segment adjusted EBITDA attributable to MPLX LP (including
predecessor results) 822 2,319 828 821 849 853 3,351 872 839 893 2,604
10 Adjusted EBITDA attributable to Predecessor (47) (262) (269) (251) (83) — (603) — — — —
11 L&S segment adjusted EBITDA attributable to MPLX LP $ 775 $ 2,057 $ 559 $ 570 $ 766 $ 853 $ 2,748 $ 872 $ 839 $ 893 $ 2,604
Gathering and Processing Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
12 Segment income (loss) from operations $ 589 $ 804 $ 225 $ 210 $ 213 $ (1,023) $ (375) $ (3,209) $ 197 $ 222 $ (2,790)
13 Depreciation and amortization 520 559 175 179 189 208 751 187 183 182 552
14 Impairment expense — — — — — 1,197 1,197 2,165 — — 2,165
15 Restructuring expenses — — — — — — — — — 9 9
16 (Income) loss from equity method investments(1) (42) (76) (32) (29) (35) 6 (90) 1,234 (49) (47) 1,138
17 Distributions/ adjustments related to equity method investments 155 216 68 72 75 80 295 67 58 75 200
18 Unrealized derivative loss/(gain) 6 (5) 4 — (11) 6 (1) (15) 6 10 1
19 Non-cash equity-based compensation 9 12 2 3 2 1 8 2 1 1 4
20 Other (8) (19) (7) (7) (9) (9) (32) (9) (8) (10) (27)
21
G&P segment adjusted EBITDA attributable to MPLX LP (including
predecessor results) 1,229 1,491 435 428 424 466 1,753 422 388 442 1,252
22 Adjusted EBITDA attributable to Predecessor — (73) (64) (78) (25) — (167) — — — —
23 G&P segment adjusted EBITDA attributable to MPLX LP $ 1,229 $ 1,418 $ 371 $ 350 $ 399 $ 466 $ 1,586 $ 422 $ 388 $ 442 $ 1,252
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
24
L&S segment adjusted EBITDA attributable to MPLX LP (including
predecessor results) $ 822 $ 2,319 $ 828 $ 821 $ 849 $ 853 $ 3,351 $ 872 $ 839 $ 893 $ 2,604 25 G&P segment adjusted EBITDA attributable to MPLX LP (including predecessor results)
1,229 1,491 435 428 424 466 1,753 422 388 442 1,252
26 Adjusted EBITDA attributable to MPLX LP 2,051 3,810 1,263 1,249 1,273 1,319 5,104 1,294 1,227 1,335 3,856
27 Depreciation and amortization (683) (867) (301) (313) (302) (338) (1,254) (325) (321) (346) (992)
28 (Benefit) provision for income taxes (1) (8) 1 1 (4) 2 — — — (1) (1)
29 Amortization of deferred financing costs (53) (55) (7) (12) (10) (13) (42) (14) (15) (15) (44)
30 Loss on extinguishment of debt — (46) — — — — — — — 14 14
31 Non-cash equity-based compensation (15) (23) (7) (5) (5) (5) (22) (5) (3) (4) (12)
32 Impairment expense — — — — — (1,197) (1,197) (2,165) — — (2,165)
33 Restructuring expenses — — — — — — — — — (36) (36)
34 Net interest and other financial costs (301) (613) (217) (217) (223) (216) (873) (216) (208) (223) (647)
35 Income (loss) from equity method investments(1) 78 247 77 83 95 35 290 (1,184) 89 83 (1,012)
36 Distributions/ adjustments related to equity method investments (231) (458) (122) (132) (145) (163) (562) (124) (115) (130) (369)
37 Unrealized derivative (losses) gains (6) 5 (4) — 11 (6) 1 15 (6) (10) (1)
38 Acquisition costs (11) (4) (1) (4) (9) — (14) — — — —
39 Other — — — — (1) — (1) (1) (1) (3) (5)
40 Adjusted EBITDA attributable to noncontrolling interests 8 18 7 7 9 9 32 9 8 10 27
41 Net income (loss) $ 836 $ 2,006 $ 689 $ 657 $ 689 $ (573) $ 1,462 $ (2,716) $ 655 $ 674 $ (1,387) Reconciliation of Segment Adjusted EBITDA attributable to MPLX LP to Net Income
MPLX LP
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year
(In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020
1 Net income (loss) $ 434 $ 836 $ 2,006 $ 689 $ 657 $ 689 $ (573) $ 1,462 $ (2,716) $ 655 $ 674 $ (1,387)
2 (Benefit) provision for income taxes (12) 1 8 (1) (1) 4 (2) — — — 1 1
3 Amortization of deferred financing costs 46 53 55 7 12 10 13 42 14 15 15 44
4 Loss on extinguishment of debt — — 46 — — — — — — — (14) (14)
5 Net interest and other financial costs 215 301 613 217 217 223 216 873 216 208 223 647
6 Income (loss) from operations 683 1,191 2,728 912 885 926 (346) 2,377 (2,486) 878 899 (709)
7 Depreciation and amortization 591 683 867 301 313 302 338 1,254 325 321 346 992
8 Non-cash equity-based compensation 10 15 23 7 5 5 5 22 5 3 4 12
9 Impairment expense 130 — — — — — 1,197 1,197 2,165 — — 2,165
10 Restructuring expenses — — — — — — — — — — 36 36
11 Loss (income) from equity investments(1)
74 (78) (247) (77) (83) (95) (35) (290) 1,184 (89) (83) 1,012
12 Distributions/ adjustments related to equity method investments 150 231 458 122 132 145 163 562 124 115 130 369
13 Unrealized derivative losses (gains) 36 6 (5) 4 — (11) 6 (1) (15) 6 10 1
14 Acquisition costs (1) 11 4 1 4 9 — 14 — — — —
15 Other — — — — — 1 — 1 1 1 3 5
16 Adjusted EBITDA 1,673 2,059 3,828 1,270 1,256 1,282 1,328 5,136 1,303 1,235 1,345 3,883
17 Adjusted EBITDA attributable to noncontrolling interests (3) (8) (18) (7) (7) (9) (9) (32) (9) (8) (10) (27)
18 Adjusted EBITDA attributable to Predecessor(2) (251) (47) (335) (333) (329) (108) — (770) — — — —
19 Adjusted EBITDA attributable to MPLX LP 1,419 2,004 3,475 930 920 1,165 1,319 4,334 1,294 1,227 1,335 3,856
20 Deferred revenue impacts 16 33 28 9 22 36 27 94 23 40 29 92
21 Net interest and other financial costs (215) (301) (613) (217) (217) (223) (216) (873) (216) (208) (223) (647)
22 Maintenance capital expenditures (84) (103) (175) (37) (62) (75) (88) (262) (34) (33) (41) (108)
23 Maintenance capital expenditures reimbursements 8 7 9 18 19 53 14 6 11 31
24 Equity method investment capital expenditures paid out (3) (13) (31) (4) (4) (8) (12) (28) (7) (4) (5) (16)
25 Restructuring expenses — — — — — — — — — — (36) (36)
26 Other (1) 6 8 — 10 6 (4) 12 4 (1) (3) —
27 Portion of DCF adjustments attributable to Predecessor(2) 8 2 81 69 63 27 — 159 — — — —
28 DCF attributable to MPLX LP 1,140 1,628 2,781 757 741 946 1,045 3,489 1,078 1,027 1,067 3,172
29 Preferred unit distributions(3)
(41) (65) (85) (30) (32) (30) (30) (122) (31) (31) (35) (97)
30 DCF attributable to GP and LP unitholders (excluding predecessor results) $ 1,099 $ 1,563 2,696 727 709 916 1,015 3,367 1,047 996 1,032 3,075
31 Adjusted EBITDA attributable to Predecessor(2) 335 333 329 108 — 770 — — — —
32 Portion of DFC adjustments attributable to Predecessor(2)
(81) (69) (63) (27) — (159) — — — —
33 DCF attributable to GP and LP unitholders (including predecessor results) $ 2,950 $ 991 $ 975 $ 997 $ 1,015 $ 3,978 $ 1,047 $ 996 $ 1,032 $ 3,075 (1) (Income)/loss from equity method investments includes impairment charges of $1,264 million for the first quarter of 2020.
(3) Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually) assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders.
(2) The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders prior to the acquisition date.
Reconciliation of Adjusted EBITDA attributable to MPLX LP and
Distributable Cash Flow attributable to GP and LP Unitholders from Net Income
Dec. 31
Dec. 31
Dec. 31
Mar. 31
Jun. 30
Sep. 30
Dec. 31
Mar. 31
Jun. 30
Sep. 30
(In millions)
2016
2017
2018
2019
2019
2019
2019
2020
2020
2020
1
Net cash provided by operating activities
$
1,491
$
1,907
$
3,071
$
853
$
1,954
$
2,990
$
4,082
$
1,009
$
2,114
$
3,336
2
Changes in working capital items
(76)
(147)
31
196
112
134
108
112
12
(154)
3
All other, net
(16)
(28)
(5)
(15)
(7)
(23)
(9)
(30)
(26)
(6)
4
Non-cash equity-based compensation
10
15
23
7
12
17
22
5
8
12
5
Net gain (loss) on disposal of assets
1
—
(3)
(1)
2
3
6
—
(1)
(1)
6
Restructuring expenses
—
—
—
—
—
—
—
—
—
36
7
Current income taxes
5
2
—
1
—
1
2
—
1
2
8
Loss (gain) on extinguishment of debt
—
—
46
—
—
—
—
—
—
(14)
9
Net interest and other financial costs
215
301
613
217
434
657
873
216
424
647
10
Asset retirement expenditures
6
2
(5)
—
1
1
(1)
—
—
—
11
Unrealized derivative losses (gains)
36
6
7
4
4
(7)
1
(15)
(9)
1
12
Acquisition costs
(1)
11
4
1
5
14
14
—
—
—
13
Other adjustments to equity method investment distributions
2
(10)
46
7
9
20
37
5
13
19
14
Other
—
—
—
—
—
1
1
1
2
5
15
Adjusted EBITDA
1,673
2,059
3,828
1,270
2,526
3,808
5,136
1,303
2,538
3,883
16
Adjusted EBITDA attributable to noncontrolling interests
(3)
(8)
(18)
(7)
(14)
(23)
(32)
(9)
(17)
(27)
17
Adjusted EBITDA attributable to Predecessor
(1)(251)
(47)
(335)
(333)
(662)
(770)
(770)
—
—
—
18
Adjusted EBITDA attributable to MPLX LP
1,419
2,004
3,475
930
1,850
3,015
4,334
1,294
2,521
3,856
19
Deferred revenue impacts
16
33
28
9
31
67
94
23
63
92
20
Net interest and other financial costs
(215)
(301)
(613)
(217)
(434)
(657)
(873)
(216)
(424)
(647)
21
Maintenance capital expenditures
(84)
(103)
(175)
(37)
(99)
(174)
(262)
(34)
(67)
(108)
22
Maintenance capital expenditures reimbursements
8
7
16
34
53
14
20
31
23
Equity method investment capital expenditures paid out
(3)
(13)
(31)
(4)
(8)
(16)
(28)
(7)
(11)
(16)
24
Restructuring expenses
—
—
—
—
—
—
—
—
—
(36)
25
Other
(1)
6
8
—
10
16
12
4
3
—
26
Portion of DCF adjustments attributable to Predecessor
(1)8
2
81
69
132
159
159
—
—
—
27
DCF attributable to MPLX LP
1,140
1,628
2,781
757
1,498
2,444
3,489
1,078
2,105
3,172
28
Preferred unit distributions
(2)(41)
(65)
(85)
(30)
(62)
(92)
(122)
(31)
(62)
(97)
29
DCF attributable to GP and LP unitholders (excluding predecessor results)
$
1,099
$
1,563
2,696
727
1,436
2,352
3,367
1,047
2,043
3,075
30
Adjusted EBITDA attributable to Predecessor
(1)335
333
662
770
770
—
—
—
31
Portion of DFC adjustments attributable to Predecessor
(1)(81)
(69)
(132)
(159)
(159)
—
—
—
32
DCF attributable to GP and LP unitholders (including predecessor results)
$
2,950
$
991
$
1,966
$
2,963
$
3,978
$
1,047
$
2,043
$
3,075
(2) Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually)
assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders.
Reconciliation of Adjusted EBITDA attributable to MPLX LP and Distributable
Cash Flow attributable to GP and LP Unitholders from Net Cash Provided by Operating Activities (YTD)
MPLX LP
Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr Year (In millions) 2016 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 Capital Expenditures: 1 Maintenance $ 84 $ 103 $ 175 $ 37 $ 62 $ 75 $ 88 $ 262 $ 34 $ 33 $ 41 $ 108 2 Maintenance reimbursements (8) (7) (9) (18) (19) (53) (14) (6) (11) (31) 3 Growth 1,213 1,381 2,078 467 494 518 522 2,001 284 185 208 677 4 Growth reimbursements (16) (5) (7) (5) (4) (21) — — (2) (2)
5 Total capital expenditures 1,297 1,484 2,229 492 540 570 587 2,189 304 212 236 752
6 Less: (Decrease) increase in capital accruals (22) 71 135 (71) (6) 10 (79) (146) (61) (111) (25) (197)
7 Asset retirement expenditures 6 2 7 — 1 — — 1 — — — —
8 Additions to property, plant and equipment 1,313 1,411 2,087 563 545 560 666 2,334 365 323 261 949
9 Investments in unconsolidated affiliates 87 761 341 135 188 171 219 713 91 131 22 244
10 Acquisitions — 249 451 (1) (5) — — (6) — — — —
11 Total capital expenditures and acquisitions 1,400 2,421 2,879 697 728 731 885 3,041 456 454 283 1,193
12 Less: Maintenance capital expenditures 88 108 167 30 53 57 69 209 20 27 30 77
13 Acquisitions — 249 451 (1) (5) — — (6) — — — —
14 Total growth capital expenditures $ 1,312 $ 2,064 $ 2,261 $ 668 $ 680 $ 674 $ 816 $ 2,838 $ 436 $ 427 $ 253 $ 1,116
